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07 Staff Report.SVACA Budget Adjustment with attachment PREPARED BY: Clinton Tada Support Services Captain Reviewed by: Interim Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 10/15/2024 ITEM NO: 7 DATE: October 7, 2024 TO: Mayor and Town Council FROM: Katy Nomura, Interim Town Manager SUBJECT: Authorize an Expenditure Budget Adjustment in the Amount of $59,621 in Fiscal Year 2024/2025 from the Available General Fund Capital/Special Project Reserve to Recognize the Silicon Valley Animal Control Authority (SVACA) Joint Powers Authority Agreement One-Time Participating Agency Capital Costs RECOMMENDATION: Authorize an expenditure budget adjustment in the amount of $59,621 in Fiscal Year 2024/2025 from the available General Fund Capital/Special Project Reserve to recognize the Silicon Valley Animal Control Authority (SVACA) Joint Powers Authority Agreement one-time participating agency capital costs. BACKGROUND: On June 4, 2024, Town Council unanimously voted to execute an agreement for animal services with the Silicon Valley Animal Control Authority (SVACA) and to become a participating member agency of the SVACA Joint Powers Authority Board (JPA). As a participating member agency of the SVACA JPA, each participating agency is required to contribute one-time capital costs during their first year to offset any additional capital or equipment costs for the JPA. As defined in the executed SVACA JPA agreement, the Town of Los Gatos would incur a one-time cost of $100,000 during FY 2024/25 to cover the expenses of a new rescue vehicle. In addition, the Town of Los Gatos would incur annual services cost in the amount of $239,471 for FY 2024/25. DISCUSSION: On September 6, 2024, the SVACA JPA agreement was fully executed by all participating agencies to include the Town of Los Gatos as a participating agency. Staff advised the Town Council that any necessary budget adjustments for one-time costs included in the fully executed SVACA JPA agreement would be brought forward for future Town Council approval. PAGE 2 OF 2 SUBJECT: Authorize an Expenditure Budget Adjustment in the Amount of $59,621 in Fiscal Year 2024/2025 to Recognize the Silicon Valley Animal Control Authority (SVACA) Joint Powers Authority Agreement One-Time Participating Agency Capital Costs DATE: September 4, 2024 The FY 2024/25 Operating Expenditures in Program 1201 (Non-Departmental) Account 63114 has a budgeted expenditure amount of $279,850 for animal services. SVACA annual operating services costs are $239,471, approximately $40,379 savings in the amount budgeted. In addition, a one-time new member contribution cost of $100,000 for the Town of Los Gatos will be paid to SVACA during FY 2024/2025. Staff recommends paying the $100,000 one-time costs using the savings ($40,379) in Program 1201 Account 63114 in addition to a transfer of $59,621 from the available General Fund Capital/Special Project Reserve to Program 1201 Account 63114 to pay the remaining balance. FISCAL IMPACT: SVACA JPA Agreement requires full payment of $100,000 one-time capital/equipment costs by the Town of Los Gatos. An expenditure budget adjustment in the amount of $59,621 from available Capital/Special Projects Reserve will be necessary to make payment in full for FY 2024/25 to SVACA in accordance with the JPA Agreement terms. Animal Services – Non-Departmental Program 1201 Account 63114 FY 24/25 Budgeted FY 24/25 Actual FY 24/25 Adjustment FY 24/25 Animal Services Operating Costs $279,850 $239,471 +$40,379 FY 24/25 One-Time Capital Costs** $100,000 -$100,000 FY 24/25 TOTAL Animal Services Costs $279,850 $339,471 -$59,621 **One-Time Capital/Equipment costs for new SVACA JPA participating agency to off-set the costs of a new SVACA Rescue Response Vehicle to be paid in FY 24/25. ENVIRONMENTAL ASSESSMENT: This action is not a project defined under CEQA, and no further action is required. Attachment: 1. SVACA Joint Exercise of Powers Authority Agreement – Revised Animal Services Agreement ATTACHMENT 1